ING Research discusses the USD outlook and adopts a tactical bearish bias going the coming week, flagging some signs suggesting that the USD rally might have peaked in the near-term.

"There are some tentative signs that the storm of dollar buying might have blown itself out.

Some of the high yield EM currencies most under pressure recorded sizable gains on Thursday after the core US CPI figure rose a benign 0.1% MoM in April. The biggest potential dollar positive risk of the week has therefore been negotiated.

The US data calendar does not look especially threatening to dollar bears next week," ING argues.

"Being dollar bears, we think there is a chance that DXY put in an important high at 93.42 on Wednesday and we would now favour a tentative decline to 92.0," ING projects.